FxWirePro: EUR/AUD fragile, risks collapse to a major fibo

• EUR/AUD declined sharply on Monday   as stronger Australian dollar and downturn in euro zone manufacturing activity weighed on euro .

• HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 45.7 in April from March's 46.1.

• The pair currently is approaching support at 38.2% fib. A break under  would unmask  1.6300 level in the short term.

• Technical signals are bearish as RSI is at 41, daily momentum studies  5, 9 and 10 DMAs are trending down. 

•  Immediate resistance is located at 1.6406(50% fib), any close above will push the pair towards 1.6476 (61.8% fib)

• Support is seen at 1.6347(38.2% fib) and break below could take the pair towards 1.6312 (Lower BB).

  Recommendation: Good to sell   around 1.6360 with stop loss of  1.64850 and target price of 1.6300.